Satellite data subscription grew by 1,955.3% after the licensing and launch of Starlink Internet Services Kenya in July 2023, a new report by the Communications Authority (CA) shows.
Starlink, operated by American aerospace company SpaceX and owned by Elon Musk announced entry into the Kenyan market mid-last year.It offers a satellite internet service that uses a constellation of low Earth orbit (LEO) satellites.Starlink now has a 0.5% market share in fixed data subscriptions.
Unlike traditional satellite internet, Starlink provides high-speed, low latency connectivity, supporting services not possible with traditional satellite technology.
According to the fourth quarter industry statistics by the CA, satellite data Subscribers stood at 8,324 by June compared to 4,808 in March this year. By June last year, the number of satellite subscribers was only 405.
“Satellite subscriptions maintained an upward trend following the launch of Starlink services during the year, with 96.9 per cent of satellite customers subscribed to speeds between 100 Mbps and 1 Gbps,” noted CA.
Market Share
In the fourth quarter, Safaricom PLC has the largest market share of 36.4 percent followed by Jamii Telecommunications Ltd and Wananchi Group at 24.0 and 17.5 percent respectively. Poa Internet, Mawingu, Vilcom, Dimension Data and Liquid Telecommunications Kenya command 13.2 per cent, 2.6 per cent, 1.5 per cent, 1.1 per cent, 1 per cent respectively.
Both Vijiji Connect and Starlink Internet Services Kenya control 0.5 per cent of market share. The total lit international internet Bandwidth Capacity in the country grew by 2.4 percent to 21,244.338 Gbps by end of June 2024.
SEACOM Ltd lit additional capacity during the quarter with the aim of meeting increasing customer demands. Utilization of Undersea Bandwidth Capacity rose by 31.3 to record 14,644.284 Gbps out of which 11,690.464 Gbps (55.0 per cent) were used in the country and 2,953.820 Gbps (13.9 per cent) sold outside the country.
Further, utilized Satellite Internet Capacity increased remarkably from 48.438 to 840.448 Gbps (1,635.1% increase) following the launch of Starlink Internet services in the country.
Safaricom Sues for Peace
In late September, market leader Safaricom confirmed it is in talks with Starlink and other satellite companies, as Elon Musk’s global project puts pressure on traditional telcos. Read More.
At the time, CEO Peter Ndegwa told Bloomberg TV that the telco has “to partner with Starlink or other satellite providers in future to make sure that that technology plays right through.”
Safaricom had initially claimed that Starlink’s operation could weaken regulatory oversight due its cross-border service. The decision to re-engage with Starlink shows that both sides have decided to be pragmatic. Musk’s focus has been on building the hardware, and partnering with local firms for distribution.
Elon Musk Internet Company Starlink Enters Kenya, Heightening Competition – Kenyan Wall Street – Business, Markets & Finance Insights